Fed Signals Cautious Approach to Rate Cuts Amid Inflation Concerns
TL;DR
Traders are now pricing in a 66.5% probability of a 25 basis point cut to the federal funds rate in December, following an October PCE inflation reading that met expectations. This marks an increase from a 59.4% probability earlier in the week, indicating a shift away from the idea of a pause by the Federal Reserve. The CME FedWatch Tool reflects this sentiment, despite a previous error in reporting a potential rate hike.
- Traders price in 66% probability of December rate cut by Fed MarketWatch
- Fed officials see interest rate cuts ahead, but only 'gradually,' meeting minutes show CNBC
- Fed Minutes Signal More Caution on Cuts if Inflation Progress Stalls The Wall Street Journal
- Federal Reserve officials signal cautious path for rate cuts amid still-high inflation The Hill
- Deutsche Bank warns Trump tariffs could stop Jerome Powell from cutting Fed rates at all next year Fortune
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